Item Description:
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Submission of HC Consortium 2024 Action Plan; neg Agmts A2412285, A2412284, A2412283 w/HUD for the 2024 CDBG, HOME, ESG Pgrms, 07/01/24-06/30/29, est recv $5,085,642; neg 16 CDBG agmts, 07/01/24-06/30/29, est NTE $2,302,172; neg 7 HOME agmts, 07/01/24-06/30/69, est NTE $3,659,961
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Resolution:
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BE IT RESOLVED, that the Hennepin County Consortium 2024 Action Plan be approved; that the plan be submitted to the U. S. Department of Housing and Urban Development; and that the County Administrator be designated as the authorized official to act on behalf of Hennepin County in matters related thereto; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Agreements A2412285, A2412284, A2412283 with the U.S. Department of Housing and Urban Development for the 2024 Community Development Block Grant (CDBG) Program, HOME Investment Partnerships (HOME) Program, and the Emergency Solutions Grant (ESG) Program, during the period July 1, 2024 through June 30, 2029, with the estimated total combined receivable amount of $5,085,642; that following review and approval by the County Attorney's Office, the County Administrator be authorized to sign the agreements, certifications, and other documents as necessary, on behalf of the county; and that the Controller be authorized to accept and disburse funds as directed; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate 16 CDBG implementation funding agreements, during the period July 1, 2024 through June 30, 2029, with a total combined not to exceed amount of $2,302,172; that following review and approval by the County Attorney's Office, the Chair of the Board be authorized to sign the agreements, and other related documents as necessary, on behalf of the county; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate 7 HOME implementation funding agreements, during the period July 1, 2024 through June 30, 2069, with a total combined not to exceed amount of $3,659,961; that following review and approval by the County Attorney's Office, the Chair of the Board be authorized to sign the agreements, and other related documents as necessary, on behalf of the county; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that sponsorship and acceptance of grant funding for the programs by the Hennepin County Board of Commissioners does not imply a continued funding commitment by Hennepin County for these programs when grant funds are no longer available.
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Background:
The U.S. Department of Housing and Urban Development (HUD) requires Hennepin County to adopt a Five-Year Consolidated Plan in order to receive HUD entitlement funds for the following programs: Community Development Block Grant Program (CDBG), HOME Investment Partnerships Program (HOME), and the Emergency Solutions Grant Program (ESG). Hennepin County is the lead HUD entitlement agency for suburban Hennepin County (recognizing that the cities of Bloomington, Eden Prairie, and Plymouth directly receive/implement CDBG funds in their communities). The 2020-2024 Consolidated Plan identified housing and community development priorities and goals. The goals were established based on demographic and economic data, input from community engagement, consideration of the priorities already established by the Consortium and HUD, and an assessment of the funding resources anticipated to be available during the Consolidated Plan period.
The 2024 Action Plan is Hennepin County's application to HUD for the 2024 CDBG, HOME, and ESG allocations and follows the priorities and goals outlined in the 2020-2024 Consolidated Plan.
Resources anticipated to be available under the 2024 Action Plan include:
CDBG entitlement funding $2,907,986
CDBG Program income and/reprogrammed funds $250,000
HOME entitlement funding $1,934,047
HOME Program income and recaptured/reprogrammed funds $1,874,319
Emergency Solutions Grant (ESG) entitlement funding $243,609
Total available under 2024 Action Plan $7,209,961
A summary of proposed funding by goals of the 2024 Action Plan follows:
• Preserve/create multifamily rental opportunities - $2,830,941
• Preserve/create single family homeownership - $2,621,929
• Create housing opportunities for homeless populations - $243,609
• Support education, outreach and services - $436,198
• Support neighborhood revitalization - $397,679
• Fair housing, Administration, and Community Housing Development Organization operating - $679,602
To meet the above goals, the county will contract with external partners for $5,962,133 (Attachment 1), and directly implement CDBG Administration ($436,198), CDBG Homeowner Rehabilitation Program and Down payment Assistance Program ($419,616) from the Consolidated Pool plus funds from direct allocation cities), and HOME Administration ($148,405). ESG funds ($243,609) will be administered by the county’s Human Services and Public Health Department. Hennepin County HOME funding agreements are typically in the form of a 30-40-year loan and must be expended within five years. Any future program income may be allocated to the Homeowner Rehabilitation Program or administration, or elsewhere as needed.
A public hearing for the 2024 Action Plan took place on April 23, 2024, before the Administration, Operations and Budget Committee. In addition, the 2024 Action Plan was made available to the public for the HUD required 30-day public comment period between March 27, 2024 and April 30, 2024. The public comment period and public hearing are submission requirements of the Consolidated Plan and the Action Plan; public comments and the county's written response will be incorporated into the final document submitted to HUD.
The county has participated in the CDBG Program since 1974, the ESG Program since 1988, and the HOME Investment Partnerships Program since 1992.
Current Request: Approve submission of the 2024 Action Plan; authorization to negotiate federal entitlement awards for the CDBG, HOME and ESG programs, estimated combined total receivable amount of $5,085,642, during the period July 1, 2024 through June 30, 2029; authorization to negotiate 16 CDBG implementation funding agreements during the period July 1, 2024 through June 30, 2029 with an estimated total combined not to exceed amount of $2,302,172, authorization to negotiate 7 HOME implementation funding agreements, during the period July 1, 2024 through June 30, 2069 with an estimated total combined not to exceed amount of $3,659,961.
Impact/Outcomes: This funding will assist in the creation of 82 affordable rental units, including the Community Corner project in Brooklyn Center and the Tessman Ridge II project in Brooklyn Park; rehabilitate and preserve 44 affordable rental units; create 23 homeownership opportunities, and repair 54 homes; and provide rapid rehousing for 55 homeless households, tenant based rental assistance for 40 households, and public services assistance to 2,882 low-income people.
recommendation
Recommendation from County Administrator: Recommend Approval